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BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY(!), MAY 3, 2013

POLICYMAKERS
   Tom Wheeler and the Future of America's Economy - analysis
   Meet Tom Wheeler, the man who could control your digital life
   FCC Chairman Nominee Wheeler in His Own Words
   Obama’s FCC Pick Has Some Surprising Allies
   Sen. Bernie Sanders 'troubled' by FCC pick's lobbying past [links to web]
   Uh-oh: AT&T and Comcast are ecstatic about the FCC’s new chairman
   Penny Pritzker for Commerce Secretary - speech
   Why Penny Pritzker can be confident [links to web]
   Politics and Vetting Leave Key U.S. Posts Long Unfilled [links to web]

LOBBYING
   Winning over President Obama with ESPN
   Why Lobbying Is Now Increasingly In The Shadows [links to web]
   Facebook, Samsung join ITI lobby group [links to web]

INTERNET/BROADBAND
   NTIA Broadband Adoption Toolkit Shares Best Practices Across US - press release
   Strickling at SHLB - speech
   CBO Scores Internet Governance Bill - research
   Data Caps Freeze Innovation: Higher Quality Video Edition - analysis
   Online sales tax supporters push back on eBay [links to web]
   Kansas City’s Gigabit Internet Experiment Starts To Take Shape
   Shawnee City Council voted to bring Google Fiber to their city - press release [links to web]

OWNERSHIP
   MMTC Targets End of May for FCC-Sanctioned Diversity Study
   Open Internet Proposal at Verizon Wins 24.1% of Shareholder Votes - press release
   Verizon Talks Tough to Vodafone
   Apple Avoids $9.2 Billion in Taxes With Debt Deal

TELECOM
   Misleading Math from a Critic of Lifeline - analysis

WIRELESS/SPECTRUM
   DARPA Seeks ‘Far Out ‘ Ideas for Mobile Networks [links to web]

CONTENT
   Digital Public Library of America wants to lend copyrighted works [links to web]
   The Craigslist Case and Other Examples of Copyright Abuse - analysis [links to web]
   Those immobile newspaper companies - analysis [links to web]
   Copyright in the Digital Era: Building Evidence for Policy - research [links to web]
   SEC Will Start TV Network in 2014 [links to web]

EDUCATION
   Professors at San Jose State Criticize Online Courses [links to web]

AGENDA
   FCC Releases Agenda for May Open Meeting - public notice

STORIES FROM ABROAD
   Flexing antitrust muscle, China is a new merger hurdle [links to web]
   Media Outlets Worldwide Decry Jamming [links to web]

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POLICYMAKERS

TOM WHEELER AND THE FUTURE OF AMERICA’S ECONOMY
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
[Commentary] Benton readers know that predicting who gets picked for leadership spots in Washington is a parlor game of high art. For some time now, the game has included predicting who the next chairman of the Federal Communications Commission will be. We’ve reported on the speculation in these pages earlier this year. But, more importantly, former FCC Commissioner Michael Copps wrote here that more meaningful than “who”, perhaps, are the priorities the President and a new FCC chair set. On May 1, President Barack Obama announced his intention to nominate Tom Wheeler to be the next chairman of the FCC. The FCC has been led for four years by Julius Genachowski who is leaving the commission in mid-May. Wheeler’s confirmation could take some time; President Obama tapped current FCC Commissioner Mignon Clyburn to serve as Interim Chairman until the Senate confirms Wheeler. Commissioner Clyburn will become the first woman to lead the FCC in its (nearly) 80 year history.
http://benton.org/node/151051
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MEET TOM WHEELER
[SOURCE: The Verge, AUTHOR: Chris Ziegler]
A longtime Washington DC insider, Tom Wheeler has spent the better part of his career lobbying for big business. Starting at the Grocery Manufacturers Association, Wheeler later became president of the National Cable Television Association, fighting for legislation on behalf of cable companies in the industry’s formative 1980s. After briefly leaving to start a couple companies focused on broadband and cellular — experiences that would clearly inform his role as an Federal Communications Commission chairman — Wheeler was once again pulled into the beltway, becoming the head of The Wireless Association (CTIA) for over a decade. But Wheeler left CTIA in 2004. As a policymaker, can he be even-keeled without putting unbalanced weight in favor of industry giants — the kinds of giants who wanted a T-Mobile-AT&T merger? "He has money and he's old," one industry source told The Verge, suggesting that Wheeler is effectively a lame duck — he has nothing to prove, no company or industry to make happy enough to secure a lucrative job in his post-FCC life. That might work out to the consumer’s advantage. It’s also worth noting that Wheeler’s stint in the cable industry came before it was huge, incumbent, slow-moving, often hostile toward its subscribers, and at constant risk of endangering competition.
benton.org/node/151093 | Verge, The
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WHEELER IN HIS OWN WORDS
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
In a blog that he has written regularly since joining Core Capital Partners several years ago, Tom Wheeler offers a few hints at where he might stand on important telecom policy issues.
On broadband authority: The Communications Act and its enforcer the FCC are analog legacies in a digital world. Of course, there will remain jurisdiction in areas such as the Universal Service Fund, rights of way, and Title I ‘ancillary jurisdiction,’ but absent a new vehicle the regulation of marketplace behavior that has characterized telecom regulation for almost a century is headed towards the same fate as the dial tone – another fatality of digital zeroes and ones.
On a PSTN sunset: The PSTN is a casualty of the digital world. The lifeblood of telephone companies . . . and the new blood of cable companies, circuit switched telephony, is headed for history. Internet Protocol (IP)-based voice service is just another app on an IP wireless or wired network.
On spectrum policy: Exhibit A for 21st century spectrum planning is Wi-Fi. . . The rules for 21st century spectrum allocation need to evolve from the avoidance of interference to interference tolerance.
benton.org/node/151077 | telecompetitor
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OBAMA'S FCC PICK HAS SOME SURPRISING ALLIES
[SOURCE: nextgov, AUTHOR: Brian Fung]
Tom Wheeler, a former wireless and cable lobbyist, might on paper be seen as a boon to industry and a blow to public interest groups. The fear among critics is that Wheeler's ties to big business could threaten consumers. But in fact, the battle lines on Wheeler's confirmation process aren't hardening in a predictable way at all. Consumer advocates themselves are somewhat divided on the pick. Sascha Meinrath of the New America Foundation said he was "skeptical" of Wheeler's ability to "[hold] his former clients accountable." At the same time, a number of high-profile influentials have spoken out in Wheeler's favor -- including Susan Crawford, a professor at Cardozo Law School who was said to be in the running for FCC chair herself. Crawford often finds herself at odds with industry in her role as an outspoken defender of consumers, making the split among public interest groups all the more noteworthy. But Gigi Sohn, the president and co-founder of Public Knowledge, said Wheeler's left-wing critics simply don't know him well enough and that he plans to be more than a "traffic cop" with little actual power over policymaking and regulation. "They've never worked with Tom Wheeler," said Sohn. "They're just going off his resume. And I just don't think a resume tells you everything." Sohn was quick to downplay the divide among consumer advocacy groups, but as a parting shot drew comparisons between Wheeler and sitting commissioner Mignon Clyburn, whom many initially opposed over ties that her father, Rep. Jim Clyburn, had with AT&T. "We were convinced she was going to be an AT&T toadie," said Sohn. "We assumed the worst about Clyburn and we were totally wrong."
benton.org/node/151075 | nextgov
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INDUSTRY AND WHEELER
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
Not surprisingly, the cable and telecom companies that Tom Wheeler springs from are ecstatic about the nomination to be Federal Communications chair. AT&T called Wheeler an "inspired pick to lead the FCC." In congratulating Wheeler, AT&T said it hopes the new FCC chairman will help get rid of "outdated laws" and "antiquated rules." "Mr. Wheeler will face daunting challenges at the FCC," AT&T Senior Executive VP Jim Cicconi said. "Already the pace of technological change is clashing with outdated laws, antiquated rules, and approaches more rooted in the past than the present. The dedicated career staff at the FCC are grappling with these challenges now. If the pace of change is to continue, along with the investment and job creation that fuel it, the mission of the FCC in the 21st Century must be re-examined, and its rules and methods modernized. In this situation, I can think of no nominee more talented or whose leadership skills are more needed. Moreover, Mr. Wheeler will be joining a complement of fellow commissioners who are equally formidable and well suited for this important moment in the FCC’s history." A similarly positive statement came from Comcast. "We congratulate Tom Wheeler on his nomination as Chairman of the Federal Communications Commission," Comcast said. His vast knowledge of the communications industry, as well as his proven leadership, will be invaluable as the Commission sets its course for our nation’s digital future. We applaud President Obama's nomination and we look forward to working with the Commission under Tom's leadership." The NCTA called Wheeler "an exceptional choice to lead the Commission" and the CTIA said it looks forward to working with Wheeler "on the breadth of spectrum and other wireless telecom matters which are pending at the Commission." Wheeler led the NCTA from 1979 to 1984 and the CTIA from 1992 to 2004.
benton.org/node/151072 | Ars Technica
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PRITZKER FOR COMMERCE
[SOURCE: The White House, AUTHOR: President Barack Obama]
I’m nominating Penny Pritzker to serve as my Secretary of Commerce. Penny is one of our country’s most distinguished business leaders. She's got more than 25 years of management experience in industries including real estate, finance, and hospitality. She’s built companies from the ground up. She knows from experience that no government program alone can take the place of a great entrepreneur. She knows that what we can do is to give every business and every worker the best possible chance to succeed by making America a magnet for good jobs. And Penny understands that just as great companies strengthen the community around them, strong communities and skilled workers also help companies thrive. So she’s been an extraordinary civic leader in our shared hometown of Chicago. She served as a member of my Jobs Council. She was the driving force behind Skills for America’s Future, which is a program that brings together companies and community colleges to shape and prepare skills-based training programs for workers that are tied into the businesses that potentially will hire them.
benton.org/node/151065 | White House, The | White House
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LOBBYING

REACHING THE PRESIDENT THROUGH ESPN
[SOURCE: Politico, AUTHOR: Anna Palmer]
President Barack Obama loves to watch sports – and the people who want to catch his eye know it. Companies and trade associations are doing something a little strange: they’re buying up airtime on ESPN. Media strategists tell POLITICO they offer up the all-sports network as an option to clients who want to get their issues in front of Obama and top White House officials, known as big sports fans and rabid ESPN watchers. A strategist said the ads can’t be so obvious that Obama knows he’s the intended audience. “It’s not just targeting Obama, but doing it in a way that is both interesting and will get the attention of the audience, but not so unusual that it will put the client in a bad position.”
benton.org/node/151069 | Politico
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INTERNET/BROADBAND

BROADBAND ADOPTION TOOLKIT
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Press release]
Commerce Department’s National Telecommunications and Information Administration (NTIA) released its Broadband Adoption Toolkit, a document aimed at sharing best practices developed from broadband adoption and digital literacy projects funded by the Broadband Technology Opportunities Program (BTOP). Leveraging the experience of about 100 communities served by BTOP to benefit the entire nation, the Toolkit gives practical ideas and tools for overcoming barriers to getting more Americans online access. Since its creation, BTOP funded $452 million in grants to cities, libraries, nonprofit organizations, colleges and other groups for projects to teach Americans the digital literacy skills they need to be competitive in the 21st century economy, and to promote the benefits of and provide access to high-speed Internet through public computer centers. “We developed the toolkit in order to share the expert knowledge and experience of the broadband adoption and computer training projects with a broader base of anchor institutions, government agencies, non-profits and others engaged in this effort,” said Assistant Secretary for Communications and Information and NTIA Administrator Lawrence E. Strickling in a speech at the Schools, Health and Libraries Broadband Coalition’s spring conference. “Our projects reached only a small percentage of the nation’s households, but we want the lessons learned to be available to everyone. And we hope that as the grant program winds down, this toolkit will serve as a legacy and foundation for others to build on as they continue this vital digital inclusion effort.” NTIA collected many of the best practices developed by BTOP grantees to create the Broadband Adoption Toolkit. This report gives guidance to communities and organizations across the country on how to structure the most effective broadband training programs, set up the most productive computing centers and teach people to use technology to improve their lives. The 68-page publication includes chapters on program planning, outreach, training and curriculum with many practical ideas and tools for bringing new groups online. NTIA utilized the contributions of nearly 40 programs in the toolkit. Key messages and guidance in the toolkit include the following:
Make digital literacy programs relevant by teaching skills that can change people’s daily lives, such as how to apply and search for a job online.
Partner with established community organizations that people know and trust to help engage hard-to-reach populations.
Provide convenient times and locations for broadband training and computer use to ensure easy access.
Address the cost of broadband adoption by providing access to discounted computer equipment and/or affordable broadband service.
The toolkit also provides specific examples from BTOP recipients describing the strategies and practices that worked best for their broadband adoption programs. For example, the City of Boston worked with a local organization, Technology Goes Home, to teach participants how using the Internet can save them money, for instance, by cutting out the cost of cashing checks through online banking.
benton.org/node/151083 | National Telecommunications and Information Administration | see the toolkit | Benton Foundation press release | B&C
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STRICKLING AT SHLB
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Lawrence Strickling]
Assistant Secretary of Commerce for Communications and Information Lawrence Strickling delivered a keynote address at the annual conference at the Schools, Health and Libraries Broadband Coalition. He spoke about the National Telecommunications and Information Administration’s $4 billion worth of investment in roughly 230 projects around the nation to expand access to and use of broadband. [much more at the URL below]
benton.org/node/151091 | National Telecommunications and Information Administration
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INTERNET GOVERNANCE BILL
[SOURCE: Congressional Budget Office, AUTHOR: Susan Willie]
H.R. 1580 would affirm the policy of the United States to preserve and advance a multistakeholder model to govern the Internet. Such a model, currently in practice, involves groups drawn from civil society, the private sector, governments, academic and research communities, as well as national and international organizations. Based on information from the Federal Communications Commission and the National Telecommunications and Information Administration, CBO estimates that implementing the bill would not have an effect on spending subject to appropriation because the workloads of those agencies would not be affected. Further, enacting H.R. 1580 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. H.R. 1580 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.
benton.org/node/151096 | Congressional Budget Office
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DATA CAPS
[SOURCE: Public Knowledge, AUTHOR: Michael Weinberg]
[Commentary] Of the many problems with data caps, one of the most pernicious is the way they freeze innovation and the evolution of online services. The announcement from Kaleidescape that they will begin offering “Blu-ray quality” video downloads illustrates that beautifully. That means that one video weighs in at over 50 GB of data. Usually we embrace services that offer higher quality than their competitors as an important evolution. If the improvement proves popular the market will reward the innovator, all of the competitors will have to adopt the new standard, and consumers’ experiences will improve. But data caps can stop that from happening.
benton.org/node/151068 | Public Knowledge
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KC’S GIGABIT
[SOURCE: Government Technology, AUTHOR: Sarah Rich]
Kansas City (KS) Mayor Joe Reardon led efforts to become a test bed for Google’s gigabit fiber-to-the-home Internet service. Kansas City (MO) Mayor Sly James then partnered with Mayor Reardon to extend the network across the state line. Mayor Reardon says he quickly realized that the fiber project would achieve a “deeper level of success” as a regional initiative. He and Mayor James had been in talks about the fiber project before James was elected in 2011. The partnership meant that the cities could work together to achieve the same goal. “With ultra-high-speed fiber, if there’s a real value to it, you don’t just want it in one city,” Mayor Reardon said. “You want it to be in a lot of cities.” As a result, the bordering cities have been introduced to Internet access with speed that is considered to be unprecedented anywhere in the US. Google says the new network offers connection speeds that are 100 times faster than what’s currently available in most US communities. The new fiber access has spurred a modern-day Gold Rush for hackers and entrepreneurs to flock to the city with hopes of jump-starting new businesses that can use the fiber network. “When Google came, it was kind of like we got this fantastic puzzle, but it had no picture on the box to tell us what it should look like when it’s done,” said Mayor James. “So we get to decide what it looks like when it’s done.” Since the rollout began, hacker communities have cropped up in neighborhoods already connected to the fiber network.
benton.org/node/151071 | Government Technology
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OWNERSHIP

MMTC DIVERSITY STUDY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Minority Media & Telecommunications Council and BIA are still in the midst of interviews for their report on the impact of crossownership rules on minority ownership, which is expected to be completed by mid-May and delivered to the Federal Communications Commission at the end of May, according to MMTC. The FCC will not be completing its 2010 quadrennial review until the study is finished, the outgoing chairman Julius Genachowski has signaled, and now that completion will have to be left to his successors since he announced this week a mid-May departure date. MMTC president David Honig said that they still needed to wrap up the interviews, write the report and have it peer reviewed, with the report expected to be done by May 17, and reviewed and sent to the FCC by the end of the month, which would put it in the hands of acting chair Mignon Clyburn. She praised the study at the time, saying it "could shed greater light on any potential harms that may result from increased media consolidation."
benton.org/node/151099 | Broadcasting&Cable
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VERIZON PROPOSAL
[SOURCE: OpenMIC, AUTHOR: Press release]
About one-quarter of all Verizon Communications shareholder votes were cast in favor of a proposal that asks the company to report on business risks from Verizon’s controversial FCC lawsuit and other actions to oppose open Internet and network neutrality principles. The preliminary vote of 24.1% in favor of the net neutrality proposal was reported at Verizon’s May 2 annual meeting in Tulsa, Oklahoma. This represents a three-fold increase in support from a similar action filed last year, which garnered 7.9% of shareholder votes in favor of a net neutrality proposal. In an open letter to Verizon shareholders, the proposal sponsors said failure to uphold network neutrality could present “serious legal, regulatory, reputational and financial risks” to Verizon while potentially reducing consumer choice, stifling economic growth and creating enormous barriers to tech innovation.
benton.org/node/151079 | OpenMIC
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VERIZON-VODAFONE
[SOURCE: Wall Street Journal, AUTHOR: Spencer Ante, Dana Cimilluca]
Verizon Communications is breaking out the stick. In comments that appear aimed at pressuring Vodafone Group to sell its stake in the companies' U.S. joint venture, Verizon Chief Executive Lowell McAdam hinted in a meeting with investors this week that Verizon Wireless might not pay a distribution to its two owners this year. Such a move would deprive Vodafone of a significant source of funds that it could otherwise use to make investments or return cash to its shareholders. Vodafone owns 45% of Verizon Wireless and has a claim on an equivalent proportion of its distributions, but Verizon owns the rest and decides when payouts are made. Specifically, McAdam said the priority for Verizon Wireless's cash flow will be to pay down the $5 billion in debt coming due at the unit between now and the middle of 2014 before making payouts to owners. Analysts have long believed that Verizon Wireless uses the payouts partly as a tool to try to influence Vodafone to sell its stake in the joint venture—a huge deal that would likely be valued at more than $100 billion.
benton.org/node/151119 | Wall Street Journal
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APPLE, TAXES AND DEBT
[SOURCE: Bloomberg, AUTHOR: Peter Burrows]
Apple avoided as much as $9.2 billion in taxes by financing part of a $55 billion stock buyback with debt rather than offshore cash that would have been billed by the U.S. government, Moody’s Investment Services estimates. Based on current rates, Apple will pay interest of about $308 million a year on the $17 billion bond offering, said Gerald Granovsky, a senior vice president at Moody’s. “From a pure corporate-finance theory perspective, this was a no-brainer,” Granovsky said. If the funds had come from Apple’s offshore cash pile of about $100 billion, the Cupertino, California-based iPhone maker would have had to pay a 35 percent tax to repatriate the money, Granovsky said. That means Apple avoided about $9.2 billion in taxes. And since interest payments are tax-deductible, that’s another $100 million a year, Granovsky said.
benton.org/node/151116 | Bloomberg
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TELECOM

MISLEADING MATH
[SOURCE: Free Press, AUTHOR: Jennifer Yeh]
At a House Communications and Technology Subcommittee Lifeline program oversight hearing, Billy Jack Gregg of Universal Consulting testified that six states receive more Lifeline funding than they should — some almost twice the amount — based on each state’s total number of eligible users. He used these numbers to suggest that there’s widespread oversubscription and fraud in these states. Here’s the problem: Gregg’s analysis itself uses flawed statistics regarding both the number of eligible subscribers and the amounts they're eligible to receive. His testimony gained a lot of traction during the hearing. Too many witnesses and representatives focused on the image of the deceitful subscriber who walks around with multiple free phones.
benton.org/node/151080 | Free Press
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AGENDA

FCC AGENDA
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission will hold an Open Meeting on Thursday, May 9, 2013. Here’s the agenda; the FCC will consider:
A Notice of Proposed Rulemaking seeking to improve consumer access to broadband aboard aircraft and encourage innovation through establishment of an Air-Ground Mobile Broadband secondary service in the 14.0-14.5 GHz band, while ensuring that existing users are protected from interference.
A Notice of Proposed Rulemaking and Notice of Inquiry to ease access to spectrum for commercial space launch operators and better facilitate federal government use of commercial satellite services, and seek comment on streamlining processes, eliminating unnecessary burdens, and identifying future communication and spectrum needs of the commercial space sector.
A Report and Order requiring CMRS providers and providers of interconnected text messaging services to provide consumers with an automatic bounce-back message if the consumer attempts to text 911 where that capability is unavailable.
benton.org/node/151115 | Federal Communications Commission
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